New research suggests graduates live in more expensive houses, drive more expensive cars and are twice as likely to be promoted at work.

Graduates were also twice as likely to go on holiday abroad as non-graduates, the research commissioned by the Department for Education found.

those who aim higher and get a degree enjoy a better lifestyle and standards of living

Margaret Hodge Education Minister

The survey of 1,445 representative adults in England, aged between 21 and 40, found 57% of non-graduates had not been promoted in the past five years compared to 36% of graduates.

The poll also found the average home of graduates was worth over �50,00 more than those without a degree, at �153,738 compared to �101,309.

The findings come as the government presses ahead with its drive to get 50% of under 30s into higher education by 2010.

Lifelong Learning and Higher Education Minister Margaret Hodge: "We already know that having a degree means on average you earn �400,000 over a lifetime more than non-graduates."

Wider benefits

"Now this research confirms that those who aim higher and get a degree enjoy a better lifestyle and standards of living."

While the benefits to the individual of gaining a degree were immense, those benefits also had an impact on the wider community, said Mrs Hodge.

"More graduates will strengthen our economy," she said.

"Our labour market forecasts show that eight out of 10 of the new jobs created over this decade will require the sorts of skills that can be acquired through higher education."